Apparently, some financial traders are feeling a little rebellious — and extremely bullish — today. American Rebel (NASDAQ:AREB) just released its third-quarter and full-year 2022 revenue forecasts. Now, the company’s predictions are inciting an amazing rally of about 30% in AREB stock this morning.
If you’re not familiar with American Rebel, the company sells safes as well as personal security and self-defense products. It also offers branded apparel and accessories.
Is American Rebel a safe bet on safes? It might be. After all, the company acquired former rival Champion Safe Company earlier this year, thereby solidifying its market footprint.
American Rebel paid a pretty penny for Champion — around $9.9 million, actually. But the company estimates that the Champion addition will “add more than $20 million in revenues” as well.
In addition to this, the company ventured into the e-bike business recently. Specifically, American Rebel signed a letter of intent with e-bike manufacturer Sierra E-Life. But this still leaves a crucial question open: how will these deals impact American Rebel’s ability to generate revenue going forward?
What’s Happening With AREB Stock?
Clearly, the market is bullish on American Rebel’s fiscal future. As of this writing, AREB stock is shooting up by about 30%, breaking shares above the 30-cent level.
The main catalyst here is a press release announcing American Rebel’s revenue forecasts for Q3 as well as for the full year. This wasn’t actually an earnings data announcement, but only preliminary expectations.
Nevertheless, it appears that American Rebel is quite confident in its ability to rake in the revenue. Here’s what the company expects in terms of current and near-future revenue generation:
- Approximately $5 million in pro forma gross revenue for Q3 2022.
- Around $14.7 million in pro forma revenue for the nine months ended Sept. 30.
- More than $20 million in annual pro forma revenue for 2022, according to CEO Andy Ross.
The market seems to like these numbers, as folks are buying up AREB stock today on heavy trading volume. Now, American Rebel has to actually deliver on its lofty expectations. Otherwise, investors may end up rebelling against the company later on.
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On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
